Solana has fallen out of the consolidation phase of the last week. The coin was unable to maintain upward momentum and is thereby shifting the recovery towards 150 USD. Since then, SOL has been moving cautiously and is waiting for a stronger confirmation.
Current on-chain and institutional activities, however, show that investors are betting on a recovery. This could indicate a new price recovery by the end of the year or early January.
Solana holders are eagerly awaiting ETF news
There is now a new trigger in the Solana ecosystem: On-chain 'Creator ETFs', also called Bands, are launching via Bands.fun. These products differ from traditional exchange-traded products. They operate directly on the Solana chain as programmable portfolios managed by creators, analysts, or influencers.
Creator ETFs can bundle tokens or NFTs and automatically balance according to predefined rules. An increase in usage boosts on-chain activity and transaction volume. More usage in the network often supports a price recovery, as the demand for SOL as a utility coin increases.
Institutions recognize potential
Data on coin holdings at centralized exchanges shows another positive signal. Solana holdings on centralized exchanges have significantly decreased over the last ten days. During this time, investors have accumulated around 2.65 million SOL, which corresponds to a value of 345 million USD.
Declining holdings on exchanges usually indicate accumulation – not distribution – of coins. Many holders are willing to take their coins into self-custody. This reduces direct selling pressure. This behavior reflects confidence in Solana's long-term development and suggests a possible stabilization following the recent weakness.
The sentiment of institutions towards Solana remains stable, despite uncertainty in the overall market. The weekly report from CoinShares shows that SOL recorded inflows of 48.5 million USD in the week leading up to December twentieth. In the current month, inflows have already reached 117.6 million USD.
These numbers indicate sustained interest from institutional investors. During phases of consolidation, professionals often build positions. More inflows can offset sales from retail investors and create a foundation for recovery when market conditions improve.
Solana is currently priced at 124 USD and is thus below the resistance at 126 USD. The combination of on-chain innovations, outflows from exchanges, and institutional inflows could usher in a recovery by the end of December or early January.
A rise above 126 USD would be the first indication of that. If Solana reaches 130 USD again, it would further strengthen the sentiment. The next target on the upside is around 136 USD. If this value is broken, it indicates progress in recovering the losses from the beginning of the month.
Downside risks remain if selling pressure resumes or the markets weaken overall. If the Solana price falls below 123 USD, the 118 USD support comes into focus. If this level is lost, the bullish scenario would be invalidated for the time being, and a recovery due to ecosystem or institutional reasons would be delayed.